Loan tools
Amortization Schedule with Extra Payments
Regular payment
$1,896
Paid off in
23 yr 1 mo (was 30 yr 0 mo)
Interest saved
$103,449
Year-end schedule
| Month | Payment | Principal | Interest | Extra | Balance |
|---|---|---|---|---|---|
| 12 | $1,896 | $300 | $1,596 | $200 | $294,174 |
| 24 | $1,896 | $334 | $1,563 | $200 | $287,958 |
| 36 | $1,896 | $369 | $1,527 | $200 | $281,325 |
| 48 | $1,896 | $407 | $1,489 | $200 | $274,249 |
| 60 | $1,896 | $448 | $1,448 | $200 | $266,698 |
| 72 | $1,896 | $491 | $1,405 | $200 | $258,642 |
| 84 | $1,896 | $538 | $1,358 | $200 | $250,046 |
| 96 | $1,896 | $587 | $1,309 | $200 | $240,875 |
| 108 | $1,896 | $640 | $1,256 | $200 | $231,089 |
| 120 | $1,896 | $696 | $1,200 | $200 | $220,648 |
| 132 | $1,896 | $756 | $1,140 | $200 | $209,507 |
| 144 | $1,896 | $820 | $1,076 | $200 | $197,621 |
| 156 | $1,896 | $889 | $1,008 | $200 | $184,938 |
| 168 | $1,896 | $961 | $935 | $200 | $171,407 |
| 180 | $1,896 | $1,039 | $857 | $200 | $156,968 |
| 192 | $1,896 | $1,122 | $774 | $200 | $141,563 |
| 204 | $1,896 | $1,211 | $685 | $200 | $125,127 |
| 216 | $1,896 | $1,305 | $591 | $200 | $107,589 |
| 228 | $1,896 | $1,406 | $490 | $200 | $88,877 |
| 240 | $1,896 | $1,514 | $383 | $200 | $68,912 |
| 252 | $1,896 | $1,628 | $268 | $200 | $47,609 |
| 264 | $1,896 | $1,751 | $145 | $200 | $24,880 |
| 276 | $1,896 | $1,882 | $15 | $200 | $629 |
| 277 | $632 | $629 | $3 | $0 | $0 |
How the math works
The regular payment is P × r ÷ (1 − (1 + r)^−n), where P is the loan amount, r is the monthly rate (annual rate ÷ 12) and n is the number of months. Each month, interest is the balance × r; the rest of the payment, plus any extra, reduces the balance.
Questions
How do extra payments shorten a loan?
Every extra dollar goes straight to principal. A lower balance means less interest next month, so more of each regular payment also goes to principal, and the loan ends early.
Is it better to pay extra monthly or once a year?
Monthly extra payments save slightly more, because the balance drops sooner. The difference is small; consistency matters more than timing.
Does my lender apply extra payments to principal automatically?
Not always. Ask your lender to apply extra amounts to principal, and check your statement to confirm it happened.
Are there prepayment penalties?
Most US fixed-rate mortgages made after 2014 have no prepayment penalty, but some loans do. Read your note or ask your servicer.